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San Gold Files Notice of Intention to Make a Proposal to Its Creditors

WINNIPEG, MANITOBA--(Marketwired - Dec. 22, 2014) -

NOT FOR DISTRIBUTION TO THE UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES.

San Gold Corporation (TSX:SGR)(OTCQX:SGRCF) ("San Gold" or the "Company") announced today that it has filed Notice of Intention (a "NOI") to Make a Proposal under Part III, Division I of the Bankruptcy and Insolvency Act (Canada) (the "BIA").

The decision to file the NOI was made by the board of directors of San Gold after extensively exploring restructuring and refinancing alternatives following thorough consultation with its legal and financial advisors and its principal secured lender.

A NOI is the first stage of a restructuring process under the BIA which permits San Gold to pursue a restructuring of its financial affairs through a formal proposal. The proposal process provides an opportunity for San Gold to restructure its operations and may allow creditors to receive some form of compensation for amounts owed to them by San Gold. The NOI grants San Gold up to an initial 30 days of protection from its creditors to enable San Gold to pursue the option of a proposal to its creditors through the proposal process. The period within which San Gold is required to file a proposal can be extended by court order.

During the period of protection granted by the NOI, San Gold will be continuing normal operations at its Rice Lake Mine Complex. Management of San Gold does not believe that there will be significant changes to the operations of the Rice Lake Mine Complex due to the NOI filing.

MNP Ltd. has been appointed as the proposal trustee in San Gold's proposal proceedings and in that capacity will monitor and assist San Gold in its restructuring efforts.

About San Gold

San Gold is an established Canadian gold producer, explorer, and developer that owns and operates the Rice Lake Mining Complex near Bissett, Manitoba. San Gold is listed on the Toronto Stock Exchange under the symbol "SGR" and on the OTCQX under the symbol "SGRCF".

No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein. This news release includes certain "forward-looking statements". All statements, other than statements of historical fact included in this release, including, without limitation, statements regarding a potential proposal to the creditors of the Company and the future plans and objectives of the Company, are forward-looking statements that involve various risks and uncertainties.

Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance (often, but not always, using words or phrases such as "expects" or "does not expect", "is expected", "anticipates" or "does not anticipate", "plans", "estimates" or "intends", or stating that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved) are not statements of historical fact and may be "forward-looking statements." Forward-looking statements are subject to a variety of risks and uncertainties that could cause actual events or results to differ from those reflected in the forward-looking statements.

There can be no assurance that forward-looking statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from the Company's expectations include, among others, the ability of the Company to make an acceptable proposal to its creditors, the ability of the Company to achieve its financing and restructuring goals and other factors that could affect the Company's ability to continue its operations including those factors discussed in the section entitled "Other MD&A Requirements and Additional Disclosure and Risk Factors" in the Company's most recent quarterly Management's Analysis and Discussion ("MD&A"). Although the Company has attempted to identify important factors that could cause actual results to differ materially, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements.